CohnReznick Guides Successful Restructuring and Sale of Coordinated Health to Lehigh Valley Health Network

(February 3, 2020 – New York, NY) – A restructuring advisory team led by CohnReznick principals Cynthia Romano and Chris Creger recently achieved a monumental success in the restructuring, workout and sale of Allentown, PA-based Coordinated Health (CH). The assets of CH were sold to Lehigh Valley Health Network (LVHN) through an out-of-court transaction that provides protection for more than 1,300 jobs, and preserves and bolsters a nationally ranked orthopedics program. In addition, the restructuring and sale avoided a bankruptcy filing, converted eight weeks of cash to eight months, and resulted in a positive outcome for all stakeholders, including 10 secured lenders, over 800 unsecured creditors, employees, vendors, litigants, and the U.S. Department of Justice. CohnReznick will work with the seller to complete the winddown of the CH entities as well as work with LVHN to support the post-acquisition transition and integration activities. 

“This transaction brought the full healthcare performance improvement, restructuring, and transaction capabilities of our team to bear on one of the most challenging cases we’ve encountered in our combined careers,” said Romano, Global Director of CohnReznick’s Restructuring and Dispute Resolution practice and Chief Restructuring Officer for CH. “Every step of the way, most stakeholders and even our fellow professionals told us not to attempt this restructuring and transaction without court protection. But, we believed value would be destroyed by a bankruptcy filing and, instead, crafted a multifaceted solution out of court that generated a spectacular outcome. I am exceptionally proud of our team and the outstanding work by the management teams of CH and LVHN and the many professionals involved – all of whom worked tirelessly for months to save this company and this community.”

On the impact of this transaction, Creger said, “Every stakeholder involved in this project realized they had to give a little during the process, but in doing so, it allowed for everyone to achieve an unbelievable result. I am exceptionally proud that we were able to support the Lehigh Valley community on the continuity of care and enhancement of services for the many people who rely on CH’s care.”

Read the official Lehigh Valley Health Network release here.